applied know how
Reuters comments that China’s credit woes are bubbling up into the news again. I have included these reviews for those of you who are part of Chinese businesses (previously here and here).
The World Bank’s top economist, Kaushik Basu, is worried about China’s reliance on credit to fuel growth. He said last week that eventually credit will catch up with it: “We’ve seen that in the U.S.… Read more
I’ve talked before about the challenge facing the Chinese economy.
Here’s two charts from that detail the slow down and the impact its having out of the main coastal areas.
More and more of the world is inextricably linked into China’s success as shown by Export trade as a proportion of world GDP.
and the overall source of China’s imports
Which shows that more than half of Chinese exports originate in Asia.… Read more
After 34 years of booming economic growth averaging over 9% per year (the longest sustained period of rapid economic growth in human history), China’s credit-fueled, investment-driven growth model is exhausted and increasingly unstable. Chinese economic growth slowed to the lowest level since 1999 last year, expanding 7.7%.
Policymakers have recognized the need to re-balance economic growth and are now slowly transitioning away from a credit and export driven economy to one driven by consumer growth.… Read more
One of the company’s I’ve invested in has relocated machinery production to China, recently, from Europe.
I suggested they look at Thailand, or Malaysia as a potential base, but China won out. I think their decision may not be so insightful as they thought.
Chinese GDP growth hit its lowest level since 1999 last year. Part of the slowdown is being driven by Beijing’s efforts to re-balance the economy away from exports and investment-led growth to domestic demand driven growth.… Read more